AN ORDINANCE ALIENATING CERTAIN PROPERTY IN DULUTH HEIGHTS AND AUTHORIZING
CONVEYANCE OF SAME TO THE HOUSING AND REDEVELOPMENT AUTHORITY OF DULUTH AT NO
COST, AND ACCEPTING A LAND EXCHANGE FROM THE HRA IN THE HAWK RIDGE AREA AND
DEDICATING SAID EXCHANGED PROPERTY FOR PARK PURPOSES.

BY COUNCILOR STOVER:

The city of Duluth does ordain:

Section 1.That the city hereby designates the property described in
Section 2 below as being surplus to the city’s future needs and hereby
declares its intention to alienate its interest in same.

Section 2.That the proper city officials are hereby authorized to
convey the following described property in St. Louis County, Minnesota, by
quit claim deed to the Housing and Redevelopment Authority of Duluth,
Minnesota, in exchange for the property described in Section 3 below and to
execute all documents necessary with regard to said conveyance:

Lots 17, 18,and 19, Block 6, DULUTH HEIGHTS FIFTH DIVISION.

Section 3.That the proper city officials are hereby authorized to
accept fee title to the following described property from the Housing and
Redevelopment Authority of Duluth, which property is hereby dedicated for park
purposes:

Outlots A and B, HAWK RIDGE ESTATES FIRST ADDITION.

Section 4.That this ordinance shall take effect 30 days from and after
its passage and publication.

STATEMENT OF PURPOSE: The city acquired the Duluth Heights property (.21
acres) from the HRA at no cost in 1986. The HRA will use this property for
public housing. In a straight exchange for the Duluth Heights property, the
HRA is offering to deed to the city Outlots A and B, HAWK RIDGE ESTATES FIRST
ADDITION. Outlots A and B (5.6 acres) are 150 feet in width, located
immediately below and adjoining Skyline Drive between 52nd and 54th Avenues
East. The city assessor has determined the value of Outlots A and B at $.30 per
square foot. The total area is calculated at 244,063 square feet for a total
value of $73,200. The acquisition of Outlots A and B will add additional
nondevelopment buffer along Skyline Drive. The HRA has added the condition
that Outlots A and B be dedicated for park purposes. The parks and recreation
commission reviewed the land exchange offer at their meeting on October 11,
2006 and support acceptance of Outlots A and B from the HRA for park purposes.

Tax Base Impact Summary:The Duluth Heights property is currently tax exempt. The HRA will make
payment in lieu of taxes (PILOT) payments for the public housing units.Outlots A and B are currently tax exempt. The tax impact is neutral.